Kuala lumpur: A total of 25 companies have expressed interest in securing financing under the Penang Climate Mitigation Fund (CM Fund), with five currently undergoing the assessment process. Chief Minister Chow Kon Yeow announced that the fund, established under the Penang Green Industry Programme (PGIP) in partnership with Alliance Bank, has an initial allocation of RM20 million, comprising RM5 million from the state government and RM15 million from the bank, with a potential commitment of up to RM100 million.
According to BERNAMA News Agency, Chief Minister Chow stated that applications are already being processed to enable companies to secure funding for necessary adaptation action plans in their factories. He shared these insights after delivering his keynote address at the R.A.C.E To Zero: Penang Edition. The event was also attended by Infrastructure, Transport and Digital Committee chairman Zairil Khir Johari and Malaysian Photovoltaic and Sustainable Energy Industry Association (MPSEA) president Justin Sim.
During his speech, Chow highlighted that eligible small and medium enterprises (SMEs) and mid-tier companies (MTCs) can access preferential financing of up to RM500,000, supported by grants, sustainability assessments, and expert advisory services. The programme, in collaboration with the Penang Green Council, offers manufacturers a practical pathway to assess their sustainability needs and implement improvements.
Chow emphasized that the transition to clean energy is a competitiveness issue rather than just an environmental concern, as global companies set stronger carbon targets across their supply chains. This is particularly crucial for Penang, which recorded RM436.9 billion in electrical and electronics (E and E) exports last year, constituting about 68 per cent of Malaysia's total E and E exports.
The Chief Minister also highlighted the Penang Energy Framework, launched in November 2024, aiming for a 25 per cent reduction in energy intensity and an increase in the share of renewable energy (RE) in the state's energy mix to at least 10 per cent by 2030. He mentioned the adoption of rooftop solar as a practical solution and the introduction of new building guidelines that require commercial and industrial buildings to utilize at least 75 per cent of their roof area for solar panels.
Furthermore, Chow disclosed that Penang is exploring other RE solutions, with the Penang Water Supply Corporation (PBAPP) studying floating solar installations on its dams, while Silicon Island will integrate RE into its development, including a Green Tech Park supported by solar generation. He also underscored the significance of energy efficiency, introducing energy intensity standards to measure, benchmark, and improve energy consumption across state government and local authority properties.
Chow concluded by stating that Penang's energy policies align with the federal government's National Energy Efficiency Action Plan (NEEAP) 2.0, which targets an 11.6 per cent reduction in national energy demand by 2035. He stressed the importance of federal and state efforts moving in the same direction towards cleaner energy, greater efficiency, and stronger competitiveness.